Air Products & Chemicals Inc. (APD) has officially dedicated its new hydrogen fueling station in Flint, Michigan. The Pennsylvania-based company built the fueling station as part of Flint Mass Transportation Authority's (MTA) alternative fuel test program. The station will cater to the needs of MTA’s hydrogen fuel cell buses that are now in service for riders.
The company will be providing fuel that will be utilized for mass transit while ensuring zero emission. Air Products has catered to a number of mass transit industries and has also established itself as a global supplier of reliable fueling systems.
The company has set up over 150 hydrogen fueling stations in the U.S. and in 19 countries globally. Its hydrogen fueling technology has wide application with over 350,000 hydrogen fills are used annually. Air Products’ technology includes over 50 patents in hydrogen dispensing technology. The company supplies liquid and gaseous hydrogen as well as a portfolio of infrastructure solutions.
Air Products is also a global leader in helium production and recently signed a long-term helium supply contract with National Helium LLC, a wholly-owned subsidiary of DCP Midstream. The feedstock from National Helium will provide the base-load helium volume for Air Products' liquid helium plant located near Liberal, Kansas, one of the largest helium purification and liquefaction plants in the world.
Air Products offers industrial gases as well as a variety of polymer and performance chemicals and serves technology, energy, industrial and health care customers globally. The company benefits from a long-term take-or-pay contract, a consolidated industry structure, diverse customer base and sustained pricing power. However, soaring energy and raw material costs pose a threat to margin expansion.
Air Products, which competes with Praxair Inc. (PX), currently retains a short-term Zacks #5 Rank (Strong Sell). We have a long-term Neutral recommendation on the stock.
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